On 13 September 2021, the Treasury Laws Amendment (2021 Measures No 6) Act 2021 (Cth) (Amending Act) was assented to. The Amending Act provides that the Franchising Code of Conduct (Code) could be amended to include higher maximum penalties for contraventions of its civil penalty provisions.
Such new penalties are not yet imposed under the Code and will only become operative if the Code is amended to include them. It is anticipated that such amendments will occur soon, with draft legislation to introduce the changes currently being privately considered.
In light of the likely increases to civil pecuniary penalties, franchisors should take steps now to ensure they are adhering to Code requirements and that their documents and processes are compliant with the other Code reforms implemented in July this year.
This article provides general commentary only. It is not legal advice. Before acting on the basis of any material contained in this article, seek professional advice.
Seva Surmei, Principal in our Business Transactions Team
Direct Telephone: +61 8 8210 2243
Jacqui Ballard, Lawyer in our Business Transactions Team
Direct Telephone: +61 8 8210 2284